Centralized exchanges (CEXs) are transforming into regulated financial entities, highlighted by Kraken's $500 million IPO and Gemini's $425 million funding round. As CEXs expand their services, they face increasing regulatory scrutiny akin to traditional banks. In contrast, decentralized exchanges (DEXs) are gaining traction, with projections indicating they will handle over $2.6 trillion in trades by 2025. This competitive landscape is driving CEXs like Coinbase to innovate with super apps, while DEXs attract users with non-custodial leverage and faster trade execution.